However, it’s fair to point out that if you were looking to acquire a peer-to-peer payment platform, you have many options besides Bitcoin.
Second, EBON stock is tied to crypto mining, with the underlying company specializing in application-specific integrated circuits .
That’s significant because while many crypto adherents see tremendous value in the less-energy intensive proof-of-stake protocols, getting there is a lot easier said than done.
Of course, innovation happens lightning-quick in the crypto market.
While it’s the obvious culprit, the inherent volatility of Bitcoin remains in my opinion the biggest culprit for EBON stock.
It doesn’t help the cause if the BTC coin declines sharply in value, which it will do at some point.
According to a Forbes article published on June 7, 2020, the cost to mine one BTC was $8,206.64.
Otherwise, you might get stuck with a hefty $8,200 bill or more.
Moreover, crypto miners must take into account the difficulty of mining Bitcoin, which fluctuates with price but has a strong upward bias.
One of the profound joys of Bitcoin’s rise of course is how high it went.
As the price corrects — that’s how the market works — miners who are holding profitable positions will have an incentive to sell.
With their balance sheet exposed to a highly volatile asset, they have a fiduciary duty to their stakeholders to not act irrationally.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.
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